UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

þ		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2009

o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

WILMINGTON TRUST CORPORATION

Delaware		51-0328154
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
Rodney Square North, 1100 North Market Street,
Wilmington, Delaware		19890
(Address of principal executive offices)		(Zip Code)

(302) 651-1000
(Registrant’s telephone number, including area code)

None
(Former name, former address and former fiscal year, if changed since last report)

     Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ       No o

     Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o       No o

      Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer þ		Accelerated filer o		Non-accelerated filer   o		Smaller reporting company o
(Do not check if a smaller reporting company)

     Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o       No þ

     Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class		Outstanding as of March 31, 2009
Common stock — Par Value $1.00		69,304,640 shares

 

 

WILMINGTON TRUST CORPORATION AND SUBSIDIARIES
Form 10-Q for the three months ended March 31, 2009

TABLE OF CONTENTS

		Page
Item 1 Financial Statements (unaudited)			1
Consolidated Statements of Condition			1
Consolidated Statements of Income			3
Consolidated Statements of Cash Flows			5
Notes to Consolidated Financial Statements			6
Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations			27
Company overview			27
Quarterly results			31
Regional Banking			37
Net interest income and net interest margin			47
Noninterest income			51
Corporate Client Services			51
Wealth Advisory Services			53
Assets under management and administration			55
Affiliate money managers			57
Noninterest expenses			60
Capital resources			61
Liquidity and funding			64
Asset quality			67
Derivatives, hedging instruments, other off-balance-sheet arrangements, and other contractual obligations			74
Other information			75
Item 3 Quantitative and Qualitative Disclosures About Market Risk			77
Item 4 Controls and Procedures			81
PART II. OTHER INFORMATION
Item 1 Legal Proceedings			82
Item 1A Risk Factors			82
Item 2 Unregistered Sales of Equity Securities and Use of Proceeds			82
Item 3 Defaults upon Senior Securities			83
Item 4 Submission of Matters to a Vote of Security Holders			83
Item 5 Other Information			83
Item 6 Exhibits			84

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three months ended March 31, 2009

PART 1 — FINANCIAL INFORMATION

CONSOLIDATED STATEMENTS OF CONDITION
(Unaudited)

		March 31,				December 31,
		2009				2008
		(In millions, except
		share amounts)
ASSETS
Cash and due from banks		$	252.0			$	290.4
Interest-bearing deposits in other banks			117.4				141.0
Federal funds sold and securities purchased under agreements to resell			—				45.3
Investment securities available for sale:
U.S. Treasury securities			23.3				41.4
Government agency securities			365.1				463.0
Obligations of state and political subdivisions			6.1				6.2
Mortgage-backed debt securities			322.8				660.3
Other securities			37.7				39.8
Total investment securities available for sale			755.0				1,210.7
Investment securities held to maturity:
Government agency securities			0.5				0.5
Obligations of state and political subdivisions			0.6				0.7
Mortgage-backed debt securities			—				0.2
Other securities			160.3				161.2
Total investment securities held to maturity			161.4				162.6
Federal Home Loan Bank and Federal Reserve Bank stock, at cost			25.0				20.0
Loans:
Commercial, financial, and agricultural			2,770.2				2,966.3
Real estate — construction			1,960.9				1,923.8
Commercial mortgage			1,942.8				1,870.2
Total commercial loans			6,673.9				6,760.3
Residential mortgage			574.6				571.2
Consumer			1,636.6				1,732.9
Loans secured with investments			523.6				554.7
Total retail loans			2,734.8				2,858.8
Total loans, net of unearned income of $5.6 in 2009 and 2008			9,408.7				9,619.1
Reserve for loan losses			(167.0	)			(157.1	)
Net loans			9,241.7				9,462.0
Premises and equipment, net			150.5				152.0
Goodwill, net of accumulated amortization of $29.8 in 2009 and 2008			355.3				355.6
Other intangible assets, net of accumulated amortization of $42.2 in 2009 and $39.6 in 2008			44.9				47.0
Accrued interest receivable			71.6				82.0
Other assets			361.4				350.3
Total assets		$	11,536.2			$	12,318.9

See notes to Consolidated Financial Statements

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three months ended March 31, 2009

CONSOLIDATED STATEMENTS OF CONDITION — (Continued)
(Unaudited)

		March 31,				December 31,
		2009				2008
		(In millions, except
		share amounts)
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand		$	1,214.8			$	1,231.7
Interest-bearing:
Savings			929.8				815.7
Interest-bearing demand			3,028.5				2,632.9
Certificates under $100,000			1,110.3				1,072.5
Local certificates $100,000 and over			180.3				230.7
Total core deposits			6,463.7				5,983.5
National brokered certificates			1,811.9				2,432.9
Total deposits			8,275.6				8,416.4
Short-term borrowings:
Federal funds purchased and securities sold under agreements to repurchase			999.4				1,590.8
U.S. Treasury demand deposits			12.4				6.4
Line of credit and other debt			—				20.0
Total short-term borrowings			1,011.8				1,617.2
Accrued interest payable			77.8				71.2
Other liabilities			365.1				411.2
Long-term debt			469.3				468.8
Total liabilities			10,199.6				10,984.8
Stockholders’ equity:
Wilmington Trust stockholders’ equity:
Preferred stock: $1.00 par value, 1,000,000 shares authorized, 330,000 5% cumulative shares issued and outstanding			322.0				321.5
Common stock: $1.00 par value, authorized 150,000,000 shares, issued 78,528,346 shares			78.5				78.5
Capital surplus			213.6				216.4
Retained earnings			1,110.3				1,103.7
Accumulated other comprehensive loss			(90.6	)			(84.5	)
Total contributed capital and retained earnings			1,633.8				1,635.6
Less: treasury stock: 9,223,706 shares in 2009 and 9,414,898 shares in 2008, at cost			(297.5	)			(301.7	)
Total Wilmington Trust stockholders’ equity			1,336.3				1,333.9
Noncontrolling interest			0.3				0.2
Total stockholders’ equity			1,336.6				1,334.1
Total liabilities and stockholders’ equity		$	11,536.2			$	12,318.9

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three months ended March 31, 2009

PART 1 — FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

		For the Three Months
		Ended March 31,
		2009				2008
		(In millions, except
		share amounts)
NET INTEREST INCOME
Interest and fees on loans		$	102.9			$	140.3
Interest and dividends on investment securities:
Taxable interest			13.2				20.5
Tax-exempt interest			0.1				0.1
Dividends			0.5				0.8
Interest on deposits in other banks			0.1				0.1
Interest on federal funds sold and securities purchased under agreements to resell			0.2				0.3
Dividends on Federal Home Loan Bank and Federal Reserve Bank stock			0.1				0.3
Total interest income			117.1				162.4
Interest on deposits			28.7				55.8
Interest on short-term borrowings			1.5				15.5
Interest on long-term debt			8.4				4.2
Total interest expense			38.6				75.5
Net interest income			78.5				86.9
Provision for loan losses			(29.5	)			(10.0	)
Net interest income after provision for loan losses			49.0				76.9
NONINTEREST INCOME
Advisory fees:
Wealth Advisory Services:
Trust and investment advisory fees			31.3				39.2
Mutual fund fees			7.5				6.4
Planning and other services			10.9				10.1
Total Wealth Advisory Services			49.7				55.7
Corporate Client Services:
Capital markets services			11.5				11.6
Entity management services			7.9				7.9
Retirement services			16.1				3.2
Investment/cash management services			3.9				3.3
Total Corporate Client Services			39.4				26.0
Cramer Rosenthal McGlynn			3.0				4.0
Roxbury Capital Management			(0.8	)			0.3
Total advisory fees			91.3				86.0
Amortization of affiliate intangibles			(2.3	)			(1.2	)
Total advisory fees after amortization of affiliate intangibles			89.0				84.8
Service charges on deposit accounts			7.9				7.6
Loan fees and late charges			2.3				2.1
Card fees			2.0				2.1
Other noninterest income			1.9				6.2
Securities gains			7.6				—
Total noninterest income			110.7				102.8
Net interest and noninterest income		$	159.7			$	179.7

See notes to Consolidated Financial Statements

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three months ended March 31, 2009

CONSOLIDATED STATEMENTS OF INCOME — (Continued)
(Unaudited)

		For the Three Months
		Ended March 31,
		2009				2008
		(In millions, except
		share amounts)
NONINTEREST EXPENSE
Salaries and wages		$	49.1			$	45.7
Incentives and bonuses			4.9				14.5
Employment benefits			16.7				14.3
Net occupancy			7.8				7.5
Furniture, equipment, and supplies			10.5				9.8
Advertising and contributions			2.5				2.1
Servicing and consulting fees			4.1				2.5
Subadvisor expense:
Retirement services			6.7				—
Other services			1.4				2.7
Travel, entertainment, and training			1.8				2.4
Originating and processing fees			2.3				2.4
Insurance			4.2				1.9
Conversion errors			2.8				—
Legal and auditing fees			2.3				1.8
Other noninterest expense			9.5				7.9
Total noninterest expense			126.6				115.5
NET INCOME
Income before income taxes and noncontrolling interest			33.1				64.2
Income tax expense			11.2				22.7
Net income before noncontrolling interest			21.9				41.5
Net income attributable to the noncontrolling interest			0.1				0.1
Net income attributable to Wilmington Trust Corporation		$	21.8			$	41.4
Net income per common share:
Basic		$	0.25			$	0.62
Diluted		$	0.25			$	0.61
Weighted average common shares outstanding (in thousands):
Basic			68,945				67,067
Diluted			68,945				67,311

		For the Three Months
		Ended March 31,
		2009				2008
		(In millions)
OPERATING ACTIVITIES
Net income attributable to Wilmington Trust Corporation		$	21.8			$	41.4
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses			29.5				10.0
Provision for depreciation and other amortization			5.6				5.5
Amortization of other intangible assets			2.6				1.5
Net income attributable to the noncontrolling interest			0.1				0.1
Amortization/(accretion) of discounts and premiums on investment securities available for sale			0.5				(0.1	)
Accretion of discounts and premiums on investment securities held to maturity			(0.3	)			—
Deferred income taxes			(1.3	)			(11.8	)
Originations of residential mortgages available for sale			(79.3	)			(30.3	)
Gross proceeds from sales of residential mortgages			80.4				30.7
Gains on sales of residential mortgages			(1.1	)			(0.4	)
Securities (gains)/losses:
Other-than-temporary impairment			4.5				—
Other			(12.1	)			—
Amortization of gain on interest rate floors			(3.5	)			(1.7	)
Stock-based compensation expense			1.5				2.9
Tax expense realized on employee exercise of stock options			—				0.2
(Increase)/decrease in other assets			(0.3	)			18.3
(Decrease)/increase in other liabilities			(33.6	)			4.5
Net cash provided by operating activities		$	15.0			$	70.8
INVESTING ACTIVITIES
Proceeds from sales of investment securities available for sale		$	404.8			$	10.2
Proceeds from maturities of investment securities available for sale			239.1				286.1
Proceeds from maturities of investment securities held to maturity			1.2				0.1
Purchases of investment securities available for sale			(187.8	)			(94.9	)
Purchases of investment securities held to maturity			(0.6	)			—
Purchases of FHLB & FRB stock, at cost			(5.0	)			—
Cash paid for acquisitions			—				(2.5	)
Sale of affiliate interest			—				0.3
Net decrease/(increase) in loans			190.8				(326.3	)
Purchases of premises and equipment			(3.8	)			(5.8	)
Dispositions of premises and equipment			0.2				0.1
Proceeds from sales of interest rate floors			—				55.1
Net cash provided by/(used for) investing activities		$	638.9			$	(77.6	)
FINANCING ACTIVITIES
Net increase/(decrease) in demand, savings, and interest-bearing demand deposits		$	492.8			$	(36.4	)
Net (decrease)/increase in certificates of deposit			(633.6	)			244.9
Net (decrease)/increase in federal funds purchased and securities sold under agreements to repurchase			(591.4	)			1.9
Net increase/(decrease) in U.S. Treasury demand deposits			6.0				(14.8	)
Net decrease in line of credit			(20.0	)			(5.0	)
Cash dividends			(14.7	)			(22.5	)
Proceeds from common stock issued under employment benefit plans			—				3.8
Tax expense realized on employee exercise of stock options			—				(0.2	)
Acquisition of treasury stock			(0.1	)			(0.2	)
Net cash (used for)/provided by financing activities		$	(761.0	)		$	171.5
Effect of foreign currency translation on cash			(0.2	)			0.1
(Decrease)/increase in cash and cash equivalents			(107.3	)			164.8
Cash and cash equivalents at beginning of period			476.7				394.5
Cash and cash equivalents at end of period		$	369.4			$	559.3

Cash paid during the three months ended March 31		2009				2008
		(In millions)
Interest		$	32.0			$	69.0
Taxes			17.5				6.0

Non-cash items during the three months ended March 31		2009				2008
		(In millions)
Net unrealized losses on securities, net of tax of $0.0 and $(5.8), respectively		$	—			$	(10.3	)
Investment securities impairment, net of tax of $1.5 and $0.0, respectively			3.0				—
Net unrealized holding gains on derivatives used for cash flow hedges, net of tax of $0.0 and $4.9, respectively			—				8.8
Reclassification from accumulated other comprehensive income into earnings of discontinued cash flow hedges, net of tax of $(1.4) and $0.1, respectively			(2.1	)			0.4
Foreign currency translation adjustment, net of tax of $(0.2) and $0.1, respectively			(0.4	)			0.3
Reclassification adjustment of derivative costs, net of tax of $0.0 and $(0.8), respectively			—				(1.4	)
Postretirement benefits liability adjustment, net of tax of $0.0 and $(0.1), respectively			—				0.1
SERP1 liability adjustment, net of tax of $0.7 and $0.1, respectively			1.2				0.1

See notes to Consolidated Financial Statements

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three months ended March 31, 2009

PART 1 — FINANCIAL INFORMATION

1. Accounting and reporting policies

We maintain our accounting records and prepare our financial statements in accordance with U.S. generally accepted accounting principles (GAAP) and reporting practices prescribed for the banking industry. Using these principles, we make subjective judgments about uncertainties and trends and we make estimates and assumptions about the amounts we report in our financial statements and notes, including amounts for revenue recognition, the reserve for loan losses, pension and other benefit plans, stock-based employee compensation, investment securities valuations, goodwill impairment, loan origination fees, income taxes, and other items. We evaluate these estimates on an ongoing basis.

The precision of these estimates and the likelihood of future changes are subject to various risks and uncertainties, and depend on a number of assumptions, estimates, expectations, assessments of potential developments, other underlying variables, and a range of possible outcomes. Circumstances that differ significantly from our judgments and estimates could cause our actual financial results to differ from our expectations.

Our financial results could be affected adversely by, among other things, changes in national or regional economic conditions; changes in market interest rates; fluctuations in equity or fixed income markets; changes in the market values of securities in our investment portfolio; significant changes in banking laws or regulations; changes in accounting policies, procedures, or guidelines; increased competition for business; higher-than-expected credit losses; the effects of acquisitions; the effects of integrating acquired entities; a substantial and permanent loss of either client accounts and/or assets under management at Wilmington Trust and/or affiliate money managers Cramer Rosenthal McGlynn (CRM) and Roxbury Capital Management (RCM); changes in the regulatory, judicial, legislative, or tax treatment of business transactions; new litigation or developments in existing litigation; and economic uncertainty created by unrest in other parts of the world.

Due to our adoption on January 1, 2009, of FSP EITF 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities,” we are calculating earnings per common share under the two-class method as described in SFAS 128, “Earnings per Share.” For more information about this, read Note 4, “Earnings per share,” in this report.

Our adoption on January 1, 2009, of SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements — an amendment of ARB No. 51,” changed the presentation of net income. What formerly was called “minority interest” is now called “noncontrolling interest,” and our income statement includes a line for “net income attributable to the noncontrolling interest” as well as a line for “net income attributable to Wilmington Trust Corporation.” Throughout this report, we use “net income” to mean “net income attributable to Wilmington Trust Corporation.”

Our consolidated financial statements include the accounts of Wilmington Trust Corporation, our wholly owned subsidiaries, and the subsidiaries in which we are majority owner. We eliminate intercompany balances and transactions in consolidation. For more

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three months ended March 31, 2009

PART 1 — FINANCIAL INFORMATION

information about our accounting policies, read Note 2, “Summary of significant accounting policies,” in our 2008 Annual Report to Shareholders.

Although we are majority owner of CRM, we do not consolidate its results because CRM owners retain control over certain governance matters. We do not consolidate the results of RCM because we are not majority owner and RCM owners retain control over certain governance matters. For information on how we account for CRM, RCM, and other subsidiaries and affiliates, read Note 4, “Affiliates and acquisitions,” in our 2008 Annual Report to Shareholders.

We have applied our critical accounting policies and estimation methods consistently in all periods presented in this report and we have discussed these policies with our Audit Committee. The information in this report has not been audited. It includes all adjustments of a normal recurring nature that we believe are necessary for fair presentation. We have reclassified certain prior-year amounts to conform to the current-year presentation. The consolidated financial statements in this report should be read in conjunction with the “Consolidated Financial Statements” and the “Notes to Consolidated Financial Statements” in our 2008 Annual Report to Shareholders.

We may use the following abbreviations throughout this report:

APB:		Accounting Principles Board
ARB:		Accounting Research Bulletin
CPP:		U.S. Department of the Treasury Capital Purchase Program
EITF:		Emerging Issues Task Force
FASB:		The Financial Accounting Standards Board
FHLB:		Federal Home Loan Bank
FIN:		FASB Interpretation (Number)
FRB:		Federal Reserve Bank
FSP:		FASB Staff Position
GAAP:		U.S. generally accepted accounting principles
IRS:		Internal Revenue Service
NYSE:		New York Stock Exchange
SAB:		Staff Accounting Bulletin
SEC:		Securities and Exchange Commission
SFAS:		Statements of Financial Accounting Standards
TARP:		U.S. Department of the Treasury Troubled Asset Relief Program

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three months ended March 31, 2009

PART 1 — FINANCIAL INFORMATION

2. Stock-based compensation plans

The Compensation Committee and the Select Committee of our Board of Directors administer an executive incentive plan, an employee stock purchase plan (ESPP), a directors’ deferred fee plan, and a long-term incentive plan. We account for our stock-based compensation plans in accordance with SFAS No. 123(revised), “Share-Based Payment.” For more information about these plans and how we determine valuations of stock-based awards, read Note 19, “Stock-based compensation plans,” in our 2008 Annual Report to Shareholders.

The common shares we issue as stock-based compensation come from our treasury, which held approximately 9.2 million shares at March 31, 2009. This is more than adequate to meet the share requirements of our current stock-based compensation plans.

No stock options were awarded during the first quarter of 2009.

Stock-based compensation expense

For the three months ended March 31 (in millions)		March 31, 2009				March 31, 2008
Compensation expense:
Common stock options		$	1.1			$	1.5
Restricted common stock			0.5				1.5
Employee stock purchase plan			(0.1	)			(0.1	)
Total compensation expense			1.5				2.9
Tax benefit			0.6				1.0
Net income effect			0.9				1.9

Stock option valuation assumptions

For the three months ended March 31 (in millions)		March 31, 2009				March 31, 2008
Risk-free interest rate			—				2.49% - 3.64	%
Value of Corporation’s common stock			—				13.71% - 17.86	%
Expected common stock dividend yield			—				3.85% - 4.34	%
Expected life of options			—				4.7 to 8.2 years

For the valuation assumptions in the table above:

•		We use the Black-Scholes valuation method.
•		The risk-free interest rate is the U.S. Treasury rate commensurate with the expected life of options on the date of each grant.
•		We based the volatility of our stock on historical volatility over a span of time equal to the expected life of the options.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three months ended March 31, 2009

PART 1 — FINANCIAL INFORMATION

•

We based the expected life of stock option awards on historical experience. Expected life is the period of time we estimate that granted stock options will remain outstanding.

Stock-based compensation expense for incentive stock options and the ESPP affects our income tax expense and effective tax rate because we are not allowed a tax deduction unless the award recipient or ESPP subscriber makes a disqualifying disposition upon exercise. As a participant in the CPP, we may not deduct compensation of more than $500,000 paid to any named executive officer identified in our proxy statement for any year in which the U.S. Treasury holds any debt or equity security we issued to the U.S. Treasury under the CPP.

Long-term stock-based incentive plans

Long-term incentive plan options exercised

For the three months ended March 31 (dollars in millions)		March 31, 2009				March 31, 2008
Number of options exercised			—				170,861
Total intrinsic value of options exercised		$	—			$	0.3
Cash received from options exercised		$	—			$	3.8
Tax benefit realized from tax deductions for options exercised		$	—			$	0.1

Long-term incentive plan option activity for the three months ended March 31, 2009

										Weighted average				Aggregate
		Common				Weighted average				remaining				intrinsic value
		stock options				exercise price				contractual term				(in millions)
Outstanding at January 1, 2009			6,982,300			$	34.95
Granted			—			$	—
Exercised			—			$	—
Expired			(270,440	)		$	29.51
Forfeited			(11,500	)		$	38.72
Outstanding at March 31, 2009			6,700,360			$	35.17			3.4 years				$	—
Exercisable at March 31, 2009			4,657,487			$	33.93			2.3 years				$	—

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three months ended March 31, 2009

PART 1 — FINANCIAL INFORMATION

Unvested stock options

At March 31, 2009, total unrecognized compensation cost related to unvested common stock options was $3.7 million, which we expect to record over a weighted average period of 1.4 years.

Restricted stock grants

We measure the fair value of restricted common stock by the last sale price of our common stock on the date of the restricted stock grant. We amortize the value of restricted stock grants into stock-based compensation expense on a straight-line basis over the requisite service period for the entire award. At March 31, 2009, total unrecognized compensation cost related to restricted stock grants was $3.7 million, which we expect to record over a weighted average period of 1.4 years.

Under our incentive plans, the vesting period for some of our restricted stock awards can accelerate upon retirement and in certain other circumstances. When we award restricted stock to people from whom we may not receive services in the future, such as those who are eligible for retirement, we recognize the expense of restricted stock grants when we make the award, instead of amortizing the expense over the vesting period of the award. In the 2009 first quarter, we recorded $0.5 million of expense for restricted stock grants. Restricted stock awarded since we became a participant in the CPP does not vest until the U.S. Treasury no longer holds any debt or equity securities we issued under the CPP.

Restricted stock activity for the three months ended March 31, 2009

		Restricted shares				Weighted average fair value at grant date
Outstanding at January 1, 2009			178,908			$	35.47
Granted			193,159			$	9.47
Vested			(28,461	)		$	38.53
Forfeited			—			$	—
Outstanding at March 31, 2009			343,606			$	20.60

Employee stock purchase plan (ESPP)

For the ESPP, we record stock-based compensation expense based on the fair value of plan participants’ options to purchase shares, amortized over the plan’s fiscal year. We use the Black-Scholes method to determine the fair value. For the three months ended March 31, 2009, total recognized compensation cost related to the ESPP was $(0.1) million, due to forfeitures in the plan. There was no unrecognized compensation cost related to this plan.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three months ended March 31, 2009

PART 1 — FINANCIAL INFORMATION

Employee stock purchase plan

		Shares reserved for future				Subscriptions
		subscriptions				outstanding				Price per share
Balance at January 1, 2008			408,875				93,992
New plan appropriation			800,000				—
Forfeitures			78,849				(78,849	)		$	36.64
Shares issued			—				(15,143	)		$	36.64
Expiration of 2004 ESPP			(487,724	)			—
Subscriptions entered into on June 1, 2008			(116,076	)			116,076			$	27.67
Forfeitures			79,346				(79,346	)		$	27.67
Balance at March 31, 2009			763,270				36,730

3. Comprehensive income

		For the Three
		Months Ended
		March 31,
Comprehensive income		2009				2008
		(in millions)
Net income before noncontrolling interest		$	21.9			$	41.5
Other comprehensive income, net of tax:
Net unrealized losses on securities, net of income taxes of $0.0 and $(5.8)			—				(10.3	)
Reclassification adjustment for securities gains included in net income, net of income taxes of $(2.8) and $0.0			(4.8	)			—
Net unrealized holding gains arising during the period on derivatives used for cash flow hedges, net of income taxes of $0.0 and $4.9			—				8.8
Reclassification from accumulated other comprehensive income into earnings of discontinued cash flow hedges, net of taxes of $(1.4) and $0.1			(2.1	)			0.4
Reclassification adjustment of derivative costs, net of income taxes of $0.0 and $(0.8)			—				(1.4	)
Foreign currency translation adjustments, net of income taxes of $(0.2) and $0.1			(0.4	)			0.3
SERP1 liability adjustment, net of income taxes of $0.7 and $0.0			1.2				0.1
Postretirement benefits liability adjustment, net of income taxes of $0.0 and $(0.1)			—				0.1
Comprehensive income before noncontrolling interest			15.8				39.5
Comprehensive income attributable to the noncontrolling interest			0.1				0.1
Comprehensive income attributable to Wilmington Trust Corporation		$	15.7			$	39.4

4. Earnings per share

As a result of our adoption on January 1, 2009, of FSP EITF 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities,” we calculate earnings per common share under the two-class method as described in SFAS 128, “Earnings per Share.” The restricted stock awards we grant include nonforfeitable rights to receive dividends over the vesting period of the award. Based on the guidance in FSP EITF 03-6-1, our unvested restricted stock awards meet the definition of a participating security, and we are required to use the two-class method to calculate earnings per share.

Using a prescribed earnings allocation formula, the two-class method requires us to present earnings per common share as if all of the earnings for the period had been distributed to common shareholders and to the holders of unvested restricted stock. The application of the two-class method reduces income available to common shareholders as well as both basic and diluted earnings per common share.

In accordance with EITF 03-6-1, we recalculated the basic and diluted earnings per share amounts for the three months ended March 31, 2008, under the two-class method. This recalculation did not change the previously reported basic earnings per share amount. It decreased the previously reported diluted earnings per share amount by $0.01. For the three months ended March 31, 2009, basic and

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three months ended March 31, 2009

PART 1 — FINANCIAL INFORMATION

diluted earnings per common share were the same under application of the two-class method as they would have been had we not adopted FSP EITF 03-6-1.

			For the Three
			Months Ended
			March 31,
Computation of Basic and Diluted Earnings per Share			2009				2008
			(In millions, except
			earnings per share
			and dividends per share)
Net income			$	21.8			$	41.4
Dividends and accretion on preferred stock				4.6				—
Net income available to common shareholders			$	17.2			$	41.4
Average common shares issued and outstanding				68.9				67.1
Dilutive common shares from employee stock options, ESPP1 subscriptions, and stock warrants				—				0.2
Total diluted common shares issued and outstanding				68.9				67.3
Basic income per common share			$	0.25			$	0.62
Diluted income per common share2			$	0.25			$	0.61
Cash dividends declared per common share			$	0.1725			$	0.335
Anti-dilutive options and warrants excluded from calculation				8.6				4.6

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three months ended March 31, 2009

PART 1 — FINANCIAL INFORMATION

5. Fair value measurement of assets and liabilities

We disclose the estimated fair values of certain financial instruments, whether or not we recognize them at fair value in our Consolidated Statements of Condition. We measure the fair values of assets and liabilities in accordance with SFAS No. 157, “Fair Value Measurements,” and other related guidance.

Fair value generally is the exchange price on which a willing buyer and a willing seller would agree when market conditions are not distressed. Because of the uncertainties inherent in determining fair value, fair value estimates may not be precise. Many of our fair value estimates are based on highly subjective judgments and assumptions we make about market information and economic conditions. Changes in market interest rates or any of the assumptions underlying our estimates could cause those estimates to change significantly.

We do not believe that the aggregate fair value amounts presented in this Note offer a full assessment of our consolidated financial condition, our ability to generate net income, or the value of our company, because the fair value amounts presented here do not consider any value that may accrue from existing client relationships or our ability to create value by making loans, gathering deposits, or providing fee-based services. In addition, we do not include the values of all nonfinancial assets and liabilities, intangible assets, and certain other financial instruments.

SFAS No. 157 establishes a three-level hierarchy that prioritizes the factors (inputs) used to calculate the fair value of assets and liabilities:

•

Level 1. Level 1 inputs are unadjusted quoted prices, such as an NYSE closing price, in active markets for identical assets. Level 1 is the highest priority in the hierarchy.

•

Level 2. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as other significant inputs that are observable at commonly quoted intervals, such as interest rates, foreign exchange rates, and yield curves.

•

Level 3. Level 3 inputs are unobservable inputs. Typically, our own assumptions determine these inputs, since there is little, if any, related market activity. Level 3 is the lowest priority in the hierarchy.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three months ended March 31, 2009

PART 1 — FINANCIAL INFORMATION

If we use multiple input levels to calculate the fair value of an asset or liability, then the lowest-level significant input determines the level for the entire fair value measurement of that asset or liability. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and it considers factors specific to the asset or liability.

In accordance with GAAP, we may be required to measure certain assets and liabilities at fair value on a nonrecurring basis. These adjustments typically relate to lower-of-cost or fair value accounting, or write-downs of individual assets due to impairment.

We conducted impairment testing on our investment in Roxbury Capital Management (RCM) and determined there was no impairment to our investment as of March 31, 2009. Current conditions in the economy and their effect on RCM that contributed to our decision to conduct impairment testing are:

•

Market pressures that have reduced managed asset levels.

•

Recent declines in assets under management.

•

Lower-than-expected operating performance.

•

Near-term cash flow and income projections.

•

Our decision to support their operations through additional investment, if needed.

Since we account for RCM under the equity method of accounting, we performed our assessment of RCM’s valuation in accordance with APB No. 18, “The Equity Method of Accounting for Investments in Common Stock,” using a discounted cash flow methodology.

For more information on our fair value disclosures and estimates, read Note 14, “Fair value measurement of assets and liabilities,” in our 2008 Annual Report to Shareholders.

Fair value of assets and liabilities measured on a recurring basis as of March 31, 2009

		Quoted prices in
		active markets for				Significant other				Significant
		identical assets				observable inputs				unobservable inputs
(in millions)		(Level 1)				(Level 2)				(Level 3)				Total
Assets:
Investment securities available for sale		$	36.9			$	718.1			$	—			$	755.0
Interest rate swap contracts			—				69.1				—				69.1
Total assets		$	36.9			$	787.2			$	—			$	824.1
Liabilities:
Interest rate swap contracts		$	—			$	69.9			$	—			$	69.9
Total liabilities		$	—			$	69.9			$	—			$	69.9

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three months ended March 31, 2009

PART 1 — FINANCIAL INFORMATION

Fair value of assets and liabilities measured on a nonrecurring basis as of March 31, 2009

		Quoted prices in
		active markets for				Significant other				Significant
		identical assets				observable inputs				unobservable inputs
(in millions)		(Level 1)				(Level 2)				(Level 3)				Total
Loans		$	—			$	3.3			$	—			$	3.3
Other real estate owned		$	—			$	5.9			$	—			$	5.9
Investment securities held to maturity		$	—			$	—			$	0.6			$	0.6
Roxbury Capital Management		$	—			$	—			$	35.3			$	35.3

In the table above, loan amounts do not include charged-off loans, because we carry fully charged-off loans at zero on our balance sheet. Also, according to SFAS No. 157, measurements for impaired loans that are determined using a present value technique are not considered fair value measurements under the standard and, therefore, are not included in the table above.

6. Derivative and hedging activities

We use derivative financial instruments, primarily interest rate swaps and floors, to help manage (hedge) the effects that changes in market interest rates may have on net interest income, the fair value of assets and liabilities, and cash flows. The derivative instruments we use are mainly interest rate swaps and floors, which we use primarily to hedge the interest rate risk associated with floating rate commercial loans and subordinated long-term debt. We also use interest rate swaps to allow commercial borrowers to manage their interest rate risk. We do not hold or issue derivative financial instruments for trading purposes. We account for derivative financial instruments in accordance with SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities,” as amended, and calculate their fair value in accordance with SFAS No. 157, as amended.

When we enter into an interest rate swap contract with a commercial loan client, we simultaneously enter into a “mirror” swap contract with a third party (counterparty). The counterparty exchanges the client’s fixed rate loan payments for floating rate loan payments. These counterparties are large international money center banks. Our arrangements with certain of these counterparties require us to post collateral when our swaps are in a liability position and allow us to request collateral when our swaps are in an asset position. When our derivatives are in an asset position, we retain the credit risk associated with the potential failure of these counterparties. At March 31, 2009, all of our counterparty swaps were in a liability position. For our commercial loan clients, we retain the credit risk inherent in making loans.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three months ended March 31, 2009

PART 1 — FINANCIAL INFORMATION

As of March 31, 2009, we had:

•

162 client swap contracts for a notional amount of $1,265.0 million and an equal amount of “mirror” swap contracts with third-party financial institutions, for a total notional amount of $2,530.0 million in swaps associated with loans to clients.

•

No interest rate floor contracts.

Under SFAS No. 133, our client swap contracts are not considered hedging instruments. We record gains and losses associated with these contracts in our income statement as “other noninterest income.” We do not offset amounts for the right to reclaim collateral (a receivable) or the obligation to return collateral (a payable) against fair value amounts recognized for derivative instruments executed with the same counterparty. At March 31, 2009, we had not recognized any receivable or payable related to the collateral we had posted to our counterparties.

Client swap contract gain/(loss) recognized in other noninterest income

For the three months ended March 31 (in millions)		2009				2008
Interest rate swap contracts in an asset position		$	(4.6	)		$	16.9
Interest rate swap contracts in a liability position			4.6				(16.9	)
Total		$	—			$	—

All of our “mirror” (non-client) swap derivative contracts have credit risk contingent features that, if triggered, could require us to post collateral or make payments in full settlement of our obligations to the third parties. These credit risk contingent features include:

•

Cross-default provisions: We have agreements with each of our non-client swap derivative counterparties that contain cross-default provisions. If we were to default on certain of our obligations, independent of our swap obligations, then we could also be declared in default on our derivative obligations and the swap arrangement could terminate.

•

Credit rating contingent features resulting in a collateral call: We have agreements with some of our non-client swap derivative counterparties that contain provisions which could increase the amount of collateral we are required to post if certain of the major credit rating agencies downgrade our credit ratings.

•

Credit rating contingent features resulting in swap termination: We have an agreement with one of our non-client swap derivative counterparties that contains a provision under which a decrease in our credit ratings to below investment grade could result in the termination of the swap agreement by the counterparty.

At March 31, 2009:

•

The aggregate fair value of all derivative instruments with credit risk-related contingent features that were in a liability position was $69.9 million, for which we had posted collateral of $36.8 million in cash and mortgage-related securities in the normal course of business.

•

The aggregate fair value of all derivative instruments with cross-default positions that were in a liability position was $69.9 million. If all of our “mirror” swaps had terminated on March 31, 2009, due to cross-default provisions, we could have been required to settle our obligations under these agreements at their termination value of $72.1 million. Since $36.8 million had already been posted as collateral at March 31, 2009, this could have resulted in a payment to our counterparties of $35.3 million.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three months ended March 31, 2009

PART 1 — FINANCIAL INFORMATION

•

The aggregate fair value of all derivative instruments with a collateral call provision related to the credit rating contingent feature that were in a liability position was $59.1 million. Additional credit rating downgrades could have resulted in a maximum potential collateral requirement of $61.3 million, which is equal to the termination value of these swaps at March 31, 2009. Since $36.8 million had already been posted on March 31, 2009, this could have resulted in an additional collateral posting to our counterparties of $24.5 million. Between April 24, 2009 and April 30, 2009, we were required to post additional collateral to our counterparties as a result of our April 24, 2009 credit rating downgrade. The additional collateral had an aggregate fair value of $24.6 million at April 30, 2009. At April 30, 2009, our total posted collateral had a fair value of $62.1 million. Our collateral requirements change depending on the composition of our swap portfolio and its fair value at a given point in time.

•

The derivative instrument with a contingent feature resulting in a swap termination was in a liability position. Its fair value was $2.0 million, and no collateral had been posted. If this swap had terminated on March 31, 2009, the credit rating contingent feature could have required us to settle this arrangement at its termination value of $2.2 million.

We sold all of our interest rate floor contracts in January 2008. We realized a gain of $35.5 million on the sale of these contracts, which had a notional amount of $1.00 billion. We are reclassifying this gain from accumulated other comprehensive income to interest and fees on loans. These monthly reclassifications began in February 2008 and will continue until July 2014. To amortize the gain on this sale into earnings, we use the method described by the Derivatives Implementation Group in DIG issue G20 of SFAS No. 133.

In the 2009 first quarter, we reclassified $3.5 million into income. Between April 1, 2009, and March 31, 2010, we expect to reclassify approximately $10.7 million of pretax net gains, or approximately $6.7 million after tax, on discontinued cash flow hedges reported in accumulated other comprehensive income. These estimates could differ from the amounts we actually recognize if we add other hedges.

Fair value of derivative instruments not designated as hedging instruments

(in millions)		At March 31, 2009				At December 31, 2008
Asset derivatives recorded in “Other assets:”
Interest rate swap contracts		$	69.1			$	73.7
Total asset derivatives		$	69.1			$	73.7
Liability derivatives recorded in “Other liabilities:”
Interest rate swap contracts		$	69.9			$	74.5
Total liability derivatives		$	69.9			$	74.5

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three months ended March 31, 2009

PART 1 — FINANCIAL INFORMATION

Effect of interest rate floor contracts in cash flow hedging relationships on other comprehensive income and the Statement of Income

For the three months ended March 31 (in millions)		2009				2008
Amount of gain recognized in OCI (effective portion)		$	—			$	13.5
Amount of gain reclassified from accumulated OCI into interest income (effective portion)			3.2				1.7
Amount of gain recognized in interest income on derivative (ineffective portion and amount excluded from effectiveness testing)			—			—

For more information about our derivative and hedging activities and how we account for them, read Note 2, “Summary of significant accounting policies,” and Note 15, “Derivative and hedging activities,” in our 2008 Annual Report to Shareholders. For more information about fair values of derivatives, read Note 5, “Fair value measurement of assets and liabilities,” in this report, as well as Note 14, “Fair value measurement of assets and liabilities,” in our 2008 Annual Report to Shareholders.

7. Reserve for loan losses

		For the Three
		Months Ended
		March 31,
Changes in the Reserve for Loan Losses		2009				2008
		(in millions)
Reserve for loan losses at beginning of period		$	157.1			$	101.1
Loans charged off:
Commercial, financial, and agricultural			(7.6	)			(0.7	)
Commercial real estate — construction			(2.4	)			(0.3	)
Commercial mortgage			(0.3	)			—
Consumer and other retail			(12.8	)			(5.4	)
Total loans charged off		$	(23.1	)		$	(6.4	)
Recoveries on loans previously charged off:
Commercial, financial, and agricultural			0.2				0.1
Consumer and other retail			1.7				1.6
Total recoveries		$	1.9			$	1.7
Net loans charged off		$	(21.2	)		$	(4.7	)
Transfers from/(to) reserve for lending commitments			1.6				—
Provision charged to operations			29.5				10.0
Reserve for loan losses at end of period		$	167.0			$	106.4
Reserve for lending commitments in other liabilities1		$	5.5			$	—

8. Goodwill and other intangible assets

		At March 31, 2009												At December 31, 2008
		Gross								Net				Gross								Net
		Carrying				Accumulated				Carrying				Carrying				Accumulated				Carrying
Goodwill and Other Intangible Assets		Amount				Amortization				Amount				Amount				Amortization				Amount
										(in millions)
Goodwill (nonamortizing)		$	385.1			$	29.8			$	355.3			$	385.4			$	29.8			$	355.6
Other intangibles (amortizing):
Mortgage servicing rights		$	10.3			$	8.1			$	2.2			$	9.7			$	8.0			$	1.7
Client lists			73.1				30.9				42.2				73.2				28.4				44.8
Acquisition costs			1.7				1.7				—				1.7				1.7				—
Other intangibles			2.0				1.5				0.5				2.0				1.5				0.5
Total other intangibles		$	87.1			$	42.2			$	44.9			$	86.6			$	39.6			$	47.0

		For the Three
		Months Ended
		March 31,
Amortization Expense of Other Intangible Assets		2009				2008
		(in millions)
Amortization expense of other intangible assets		$	2.6			$	1.5

 

Future Amortization Expense of Other Intangible Assets
for the Year Ended December 31		2010				2011				2012				2013				2014
		(in millions)
Estimated annual amortization expense of other intangibles		$	8.1			$	6.8			$	5.6			$	4.4			$	3.2

 

						Wealth				Corporate				Affiliate
		Regional				Advisory				Client				Money
Carrying Amount of Goodwill by Business Segment		Banking				Services				Services				Managers				Total
		(in millions)
Balance as of January 1, 2009		$	3.8			$	125.7			$	83.2			$	142.9			$	355.6
Decrease in carrying value due to foreign currency translation adjustments			—				—				(0.3	)			—				(0.3	)
Balance as of March 31, 2009		$	3.8			$	125.7			$	82.9			$	142.9			$	355.3

 

		2009												2008
										Weighted												Weighted
										Average												Average
Changes in Other Intangible Assets		Amount				Residual				Amortization				Amount				Residual				Amortization
for the Three Months Ended March 31		Assigned				Value				Period				Assigned				Value				Period
		(in millions)
Mortgage servicing rights		$	0.6			$	—			8 years				$	0.2			$	—			8 years
Decrease in carrying value due to foreign
currency translation adjustments			(0.1	)											—
Changes in other intangible
assets		$	0.5			$	—							$	0.2			$	—

For more information about goodwill and other intangible assets, read Note 2, “Summary of significant accounting policies,” and Note 10, “Goodwill and other intangible assets,” in our 2008 Annual Report to Shareholders.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three months ended March 31, 2009

PART 1 — FINANCIAL INFORMATION

9. Components of net periodic benefit cost

We offer a pension plan, a supplemental executive retirement plan (SERP), and a postretirement benefit plan for which we record net periodic benefit costs. For more information about these plans, read Note 18, “Pension and other postretirement benefits,” in our 2008 Annual Report to Shareholders.

Components of net periodic benefit cost for the three months ended March 31

																		Postretirement
		Pension Benefits								SERP Benefits								Benefits
		2009				2008				2009				2008				2009				2008
										(in millions)
Service cost		$	3.0			$	2.4			$	0.3			$	0.2			$	0.1			$	0.3
Interest cost			3.3				3.1				0.5				0.4				0.5				0.6
Expected return on plan assets			(4.7	)			(4.5	)			—				—				—				—
Amortization of prior service cost			—				—				0.1				0.1				(0.5	)			(0.1	)
Recognized actuarial losses			0.5				0.1				0.2				0.1				0.2				0.2
Net periodic benefit cost		$	2.1			$	1.1			$	1.1			$	0.8			$	0.3			$	1.0
Employer contributions		$	—			$	—			$	0.1			$	0.1			$	0.7			$	0.7
Expected annual contribution		$	—							$	0.6							$	3.0

10. Investment securities

We maintain an investment securities portfolio to generate cash flow, to help manage interest rate risk, and to provide collateral for deposits and other liabilities. We do not invest in securities for trading purposes. There are no client funds in this portfolio. For more information about this portfolio, read Note 6, “Investment securities,” in our 2008 Annual Report to Shareholders.

Numerous factors affect the valuations at which we record these securities on our balance sheet, including market interest rates, credit spreads, and investor perceptions. We review the securities in our investment portfolio at least quarterly in order to determine their fair value, which can be equal to, more than, or less than their book value (amortized cost). To determine a security’s fair value, we use a variety of techniques and consult with third-party valuation experts. For more information about the key determinants of a security’s fair value, read Note 14, “Fair value measurement of assets and liabilities,” in our 2008 Annual Report to Shareholders.

We classify investment securities in one of two categories:

1.

Available-for-sale (AFS). This means we have the ability to hold the security, but we may elect to sell it, depending on our needs.

2.

Held-to-maturity (HTM). This means we have not only the ability, but also the intent, to retain the security on our books until it matures.

AFS securities are carried at their estimated fair value. When the fair value of an AFS security exceeds its book value, we record an unrealized gain as a change in stockholders’ equity through accumulated other comprehensive income. This increases stockholders’ equity. It does not affect earnings.

HTM securities are carried at their amortized cost. When the fair value of an HTM security exceeds its book value, we report the amount of its increase in value in a footnote disclosure, not as a change in stockholders’ equity. There is no effect to our financial statements or earnings.

Wilmington Trust Corporation and subsidiaries
Form 10-Q for the three months ended March 31, 2009

PART 1 — FINANCIAL INFORMATION

When a security’s fair value falls below its book value, the security is considered impaired, and
we must account for it in one of two ways:

1.		As temporarily impaired.
2.		As other-than-temporarily impaired (OTTI).

To determine whether a security is OTTI, we consider factors that include:

•

The causes of the decline in fair value, such as credit problems, interest rate fluctuations, industry conditions, or market volatility.

•

The severity and duration of the decline in fair value below the amortized cost basis.

•

Failure of the issuer to make scheduled interest or principal payments.

•

Changes to the rating of the security by credit rating agencies.

•

Our ability and intent to hold these investments until they recover in value, mature, or are called.

For more information about how we account for investment securities, read Note 5, “Fair value measurement of assets and liabilities,” in this report, as well as Note 2, “Summary of significant accounting policies,” Note 14, “Fair value measurement of assets and liabilities,” and Note 21, “Accumulated other comprehensive income,” in our 2008 Annual Report to Shareholders.

		March 31, 2009								December 31, 2008
		Amortized				Fair				Amortized				Fair
Book Values (Amortized Cost) and Fair Values		Cost				Value				Cost				Value
		(in millions)
Investment securities available for sale:
U.S. Treasury securities		$	23.2			$	23.3			$	41.2			$	41.4
Government agency securities			361.7				365.1				453.9				463.0
Obligations of state and political subdivisions			6.1				6.1				6.3				6.2
Mortgage-backed debt securities			315.4				322.8				649.6				660.3
Preferred stock			20.5				15.1				20.5				17.1
Other marketable equity securities			22.6				22.6				26.3				22.7
Total		$	749.5			$	755.0			$	1,197.8			$	1,210.7
Investment securities held to maturity:
Obligations of state and political subdivisions		$	0.6			$	0.6			$	0.7			$	0.7
Mortgage-backed debt securities			—				—				0.2				0.2
Corporate debt securities			159.4				115.8				160.2				116.8
Foreign securities			0.5				0.5				0.5				0.5
Other debt securities			0.9				0.9				1.0				1.0
Total		$	161.4			$	117.8			$	162.6			$	119.2
		March 31, 2009								December 31, 2008
		Unrealized				Unrealized				Unrealized				Unrealized
Unrealized Gains/(Losses)		Gains				Losses				Gains				Losses
						(in millions)
Investment securities available for sale:
U.S. Treasury securities		$	0.1			$	—			$	0.2			$	—
Government agency securities			3.4				—				9.1				—
Obligations of state and political subdivisions			—				—				—				(0.1	)
Mortgage-backed debt securities			7.6				(0.2	)			11.5				(0.8	)
Preferred stock			—				(5.4	)			0.4				(3.8	)
Other marketable equity securities			—				—				—				(3.6	)
Total		$	11.1			$	(5.6	)		$	21.2			$	(8.3	)
Investment securities held to maturity:
Corporate debt securities		$	4.4			$	(48.0	)		$	—			$	(43.4	)
Total		$	4.4			$	(48.0	)		$	—			$	(43.4	)